3rd 1st quarter report 2020

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theunitedinsurance.com

ASPIRINGLYDETERMINED &

OPTIMISTIC

Years ofExcellence

REPORT2020

3rdQuarter

F



OPTIMISTIC

Years ofExcellence

REPORT2020

1stQUARTER

CONTENTS

COMPANY INFORMATION

02 03 04 05CorporateInformation

CommitteesComposition

Key ManagementPersonnel

Banks &Leasing Companies

CONDENSED INTERIM FINANCIAL INFORMATION

11 12 13Condensed InterimStatement ofFinancial Position

Condensed Interim Profit and Loss Account

Condensed InterimStatement of Comprehensive Income

16 17Condensed Interim Statement of Changes in Equity

Notes to and Forming Part of these Condensed Interim FinancialStatements

WINDOW TAKAFUL OPERATIONSCONDENSED INTERIM FINANCIAL INFORMATION

34 36 37Condensed InterimStatement of Financial Position

Condensed InterimProfit and LossAccount

Condensed InterimStatement of Comprehensive Income

40 41Condensed InterimStatement of Changes inShareholders Equityand Participants’Takaful Fund

Notes to and Forming Part of these Condensed Interim FinancialStatements

06Directors’ Review ReportTo The Members

09کو ز ممبر

ٹ ر پو ر ز یکٹر ئر ا ڈ

14Condensed InterimCash Flow Statement

38Condensed InterimCash Flow Statement

2 United Insurance Company of Pakistan Limited

CORPORATE INFORMATION

BOARD OF DIRECTORS

CHAIRMANJavaid Sadiq

CHIEF EXECUTIVE OFFICERMuhammed Rahat Sadiq

DIRECTORSKhawas Khan NiaziHuma WaheedAgha Ali ImamJamil Ahmed KhanSyed Rahat Ali Shah

ADVISOR TO BOARDMian M.A.Shahid (Chairman UIG)

ADVISORSSardar Khan(Former Managing Director Universal Insurance Company Limited)

Major General (R) Asif Duraiz Akhtar

COMPANY SECRETARYAthar A. Khan

CHIEF FINANCIAL OFFICERMaqbool Ahmad

CHIEF INTERNAL AUDITORAbdul Mannan Munir

AUDITORSM/S. Ilyas Saeed & Co. Chartered Accountants

LEGAL ADVISORSMohammed Farooq Sheikh (Advocate)

Mian Asghar Ali (Advocate)

TAX ADVISORM/S. Sarwars Chartered Accountants

CREDIT RATING AGENCY (PACRA)

INSURER FINANCIAL STRENGTHAA (Double A) The Rating Denotes a very strong capacity to meet policyholder and contract obligations. Risk factors are modest, and the impact of any adverse business and economic factors is expected to be very small.

COMPANY’S SHARE REGISTRARM/S. F.D.Registrar Services(SMC-Pvt) Ltd. 1705,17th Floor, Saima Trade Center, I.I.Chundrigar Road, Karachi.

WEB PRESENCEwww.theunitedinsurance.com

REGISTERED OFFICE204, 2nd Floor, Madina City Mall,Abdullah Haroon Road, Saddar Karachi.TEL: 021-35621460-2, 021-35221803-4FAX: 021-35621459Email: [email protected]

HEAD OFFICEUIG House, 6-D, Upper Mall, LahoreTEL: 042-35776475UAN: 92-42-111-000-014FAX: 92-42-35776486, 35776487Email: [email protected]

33rd Quarter Report 2020

COMMITTEESCOMPOSITION

Underwriting Committee:

Name of Member Category

Mr. Khawas Khan Niazi Chairman

Mr. S. M. Qaisar Imam Member

Mr. Aamir Hameed Member

Mr. Tayyab Bashir Secretary

Ethics, Human Resource & Remuneration Committee:


Mr. Jamil Ahmed Khan Chairman

Mr. Javaid Sadiq Member

Mr. Muhammed Rahat Sadiq Member

Mr. Wakeel Ahmed Mirza Secretary

Claims Settlement Committee:


Ms. Huma Waheed Chairperson

Mr. Tajammal Iqbal Member

Mr. Kamran Zaman Member

Mr. Rizwan Safdar Secretary

Reinsurance & Co-insurance Committee:


Mr. Muhammed Rahat Sadiq Chairman

Mr. Aamir Hameed Member

Mr. Tayyab Bashir Member

Mr. Abrar Ahmad Minhas Secretary

Audit Committee:


Mr. Agha Ali Imam Chairman

Mr. Khawas Khan Niazi Member

Syed Rahat Ali Shah Member

Mr. Maqbool Ahmad CFO

Mr. Abdul MannanMunir

InternalAuditor(Secretary)

Investment Committee:


Mr. Jamil Ahmed Khan Chairman

Mr. Agha Ali Imam Member

Mr. Muhammed Rahat Sadiq Member

Mr. Tajammal Iqbal Member

Mr. Maqbool Ahmad Secretary

Risk Management & Compliance Committee:


Mr. Javaid Sadiq Chairman

Ms. Huma Waheed Member

Syed Rahat Ali Shah Member

Mr. Waqar Tanveer Secretary


EXECUTIVE DIRECTORS (MARKETING)

Muhammad Rafique Khan

Zarar Ahmed Butt

Mian Kashif Rasheed

Ch. Aslam Feroze

Rizwan-Ul-Haq

Shafaqat Ali Goraya

Hassan Nadeem

Ch. Shamas-ul-Haq

Kh. Adnan Hassan

Muhammad Mazhar Shah

Malik Khurram Mansoor

Nauman-ul-Haq

Tanveer Ahmad Bhatti

JOINT DIRECTORS (MARKETING)

Aslam Rajpoot

Mian Muhammad Rafi

Faisal Javaid

Muhammad Mohsin ullah

Chaudhary Iqbal Tahir

Zafar Mahmood

Hassan Bin Dawood

Malik Azhar Ahmad

Mujeeb-ur-Rehman Khokhar

Zahid Mukhtar Paracha

Mian Muhammad Asif

Raheel Zia

Rana Muhammad Ashraf

Shahid Hussain Chishti

Junaid Akhtar Samoo

Mumtaz Ahmad Kahlon

CONVENTIONAL BUSINESS

HEAD OF CONVENTIONAL BUSINESSTajammal Iqbal

CHIEF OPERATING OFFICERAamir Hameed

SR. EXECUTIVE DIRECTOR UNDERWRITINGS.M. Qaiser Imam

SR. EXECUTIVE DIRECTOR /GROUP COUNTRY MANAGERDr. Murtaza Mughal

JOINT DIRECTOR OPERATIONTayyab Bashir

HEAD OF CORPORATECOMPLIANCEAli Hassan Bhatti

SR. GENERAL MANAGER RE-INSURANCEAbrar Ahmed Minhas

CHIEF INFORMATION SECURITY OFFICERMunir Ahmad

GENERAL MANAGER HR & RWakeel Ahmed Mirza

GENERAL MANAGER HEALTH/TRAVELKashif Shafique

GENERAL MANAGER ADMINISTRATIONMaj.(R) Nadeem Iqbal Naz

DEPUTY GENERAL MANAGER CLAIMSKamran Zaman

A.G.M UNDERWRITINGManzoor Hussain Mirza

A.G.M REINSURANCENaeem Ahmed Babar

CHIEF MANAGER (WEB) Mohammad Arshad

CHIEF MANAGER (AGRI)Zulfiqar Ahmed

SR. MANAGER COORDINATIONTahira Ashar

WINDOW TAKAFUL OPERATIONS

HEAD OF TAKAFUL OPERATIONSShakeel Ahmed

SHARIAH ADVISORMufti Farhan Farooq

SHARIAH COMPLIANCE OFFICERSaad Munir Malik

KEY MANAGEMENT PERSONNEL


BANKS &LEASING COMPANIES

BANKS

State Bank of PakistanNational Bank of PakistanBank Al-Habib LimitedSoneri Bank LimitedBank Alfalah LimitedMeezan Bank LimitedSME Bank LimitedThe Bank of KhyberSummit Bank LimitedSilk Bank LimitedSamba Bank LimitedZarai Taraqiati Bank LimitedSindh Bank LimitedThe Bank of PunjabFirst Women Bank LimitedThe Punjab Provincial Cooperative Bank LimitedAllied Bank LimitedHabib Bank LimitedMCB Bank LimitedUnited Bank LimitedAl Baraka Bank (Pakistan) LimitedAskari Bank LimitedDubai Islamic Bank Pakistan LimitedFaysal Bank LimitedStandard Chartered Bank (Pakistan) LimitedBarclays Bank PLC, PakistanHabib Metropolitan Bank LimitedKarakuram Cooperative Bank LimitedJS Bank LimitedBank Islami Pakistan LimitedBank of Azad Jammu and KashmirMIB Islamic Bank Limited

LEASING COMPANIES

Orix Leasing Company LimitedCrescent Standard Modaraba

MICRO FINANCE BANKS

APNA Microfinance Bank LimitedKhushhali Microfinance Bank LimitedPak-Oman Microfinance Bank LimitedThe First Microfinance Bank LimitedWaseela Microfinance Bank LimitedU Microfinance Bank LimitedTameer Microfinance Bank LimitedNRSP Microfinance Bank LimitedTelenor Microfinance Bank LimitedMobilink Microfinance Bank Limited


Dear Fellow Members!

We are pleased to present the unaudited condensed interim financial statement for the nine months period ended September 30, 2020. The directors of “The United Insurance Company of Pakistan Limited” are pleased to announce the financial results for the nine months period ended September 30, 2020 along with the figures for the same period ended September 30, 2019.

Performance Overview Conventional – (Nine Months Period Ended September 30, 2020)

The company’s gross premium income and net premium income for the nine months ended September 30, 2020 stands at Rs. 3,137.235 million and Rs. 1,752.442 million, respectively. Whereas during the comparative period of nine months ended September 30, 2019, gross premium income was Rs. 3,262.822 million and net premium income was Rs. 1,881.725 million. These figures reflect the commitment of our team members in tough economic environment in the country. The business of our company is sound and stable due to our concerted efforts and by the grace of God.

Underwriting results for the nine months ended September 30, 2020 are being reported as Rs. 627.969 million, whereas for the same period in the previous year 2019 it was reported as Rs. 504.518 million. This is commendable achievement of our staff and the field force due to which the underwriting results improved further.

The company’s profit before tax has increased during the first nine months of 2020 by 9.97% from Rs. 622.829 million in 2019 to Rs. 684.897 million in 2020. Similarly, profit after tax being reported amounts to Rs. 514.143 million in nine months ended September 30, 2020. Whereas profit after tax for the same period in 2019 was Rs. 467.244 million.

The earnings per share (EPS) of the company which includes both basic and diluted stands at Rs. 1.74/- per share for nine months ended September 30, 2020 as compared to Rs. 1.58/- per share in 2019 reflecting a slight improvement.

Investment income has slightly decreased to Rs. 40.923 million for the first nine months ended September 30, 2020 compared to Rs. 42.818 million during first nine months ended September 30, 2019 due to investment in associate companies/Bank for long term benefit. Management and Other expenses increased slightly by 3.80% as compared to 2019.

Performance Overview Takaful Operations - (Nine Months Period Ended September 30, 2020)

The following financial data reflects the performance of Window Takaful Operations during the nine months ended September 30, 2020.

There was a slight decrease of contribution of 23.92% in the gross written contribution, compared to the nine months ended September 30, 2019. The gross written contribution for the nine months ended September 30, 2020 decreased from Rs. 887.663 million in 2019 compared to Rs. 675.311 in 2020 due to Covid19 crises.

Investments of operators fund are increased by Rs. 49.530/- million during the nine months ending September 30, 2020 and stands at Rs.146.480/-.

General and management expenses of the operator increased from Rs. 84.157 million in 2019 to Rs. 84.815 million in 2020.

State of Company’s Business affairs

Directors of the Company:

Following are the names of persons who were/are Directors at any time during the financial period being reported:

• Mr. Javaid Sadiq,

• Mr. Muhammed Rahat Sadiq,

• Mr. Khawas Khan Niazi,

• Miss. Huma Waheed,

• Mr. Agha Ali Imam,

• Mr. Jamil Ahmad Khan

• Syed Rahat Ali Shah

Risks and Uncertainties Facing the Business:

Pandemic adversely affected the whole economy of our country, similarly Insurance business was also effected by covid-19. Companies were not able to underwrite motor insurance of new motor vehicles business due to closure of motor industry during covid-19. However, each industry is trying to recover from this phase and things are getting better day by day.

Finally, there will be a relatively high risk of digitalization and new technology related issues to be addressed in the post corona crises as much of the business sectors and specifically insurers will adopt the digital and financial technology

DIRECTORS’ REVIEW REPORT TO THE MEMBERS


to digitalize service. Technology will be more of both an opportunity as well as risk from customers and compliance perspective. Fundamental economic and technological changes call for new types of coverage, revamped policies, and alternative distribution platforms. Yet adaptation has been slow going for the insurance industry.

Future Outlook

In 2020 Pakistan has taken significant steps towards improving the ease of doing business climate and CPEC has shifted in next gear. Various construction related activities are started which will give to rise to sales, employment opportunities and growing of businesses.

We continue to have a positive outlook on the long term growth potential of the business, however we do foresee certain headwinds in the short term owing to coronavirus crises in the form of Rupee depreciation, higher inflation which might have an impact on the future results. The management remains fully committed towards managing these challenges and delivering sustainable profitable growth capitalizing on our strong brands, management capabilities and operational excellence. The United Insurance Company of Pakistan Limited relies on innovation to grow its business. We continue to develop innovative products, efficient delivery channels, on-line retail systems and state-of-the-art contact center.

CSR and Company’s Business Impact on Environment:

The vision of CSR at UIC outlines our role as a socially responsible corporate citizen that will endeavor to participate in programs that benefit the society at a large and also those who need special assistance. Our objective, which we have been positively fulfilling for decades, is to operate our business in an economically, socially, and environmentally sustainable manner, to introduce and participate in programs that benefit the community. To enhance the quality of life for those in need and to create a community goodwill is how we aim to enhance our company as a socially responsible corporate citizen.

We comply with the law, ethical standards, and international norms for implementing CSR in our business activities. Being accountable for our actions is what we embrace here at UIC.

Adequacy of Internal Control:

The management of UIC is responsible for the establishment and maintenance of the system of internal control in order to identify and manage risks faced by the company. We have designed sound system of internal controls to adequately provide reasonable reassurance that the assets are safeguarded against unauthorized disposition. A proper and reliable accounting records are available for use which is safeguarded through adequate control mechanisms. There is complete and significant internal control system is rooting up for the progress and prosperity of company so that there could not be any kind of mismanagement can happen and if there is any question raise then due to quick and efficient internal control solution will dissolve all the negative matter.

Acknowledgement

We wish to thank our valued customers for their faith in our products and services and sincerely hope that they will continue their support, care and confidence in our leadership. We also take this opportunity to thank our bankers and regulatory bodies for providing us with their valuable support throughout this period.

Due to the great and strong reassurance of our customers, banks, and clients the rating agency PACRA has maintained the rating of AA which shows and raised the professional commitment of our company therefore The United Insurance Company Of Pakistan Limited enrich with spectacular confidence and reputed commitment to meet the every desire of our stakeholders.

Finally, we wish to thank our staff whose dedication and commitment has been a source of strength for the company. For and on behalf of the Board.

Muhammed Rahat SadiqChief Executive Officer

Date: October 27, 2020

Javaid SadiqChairman

Date: October 27, 2020


ٹیکنالوجی ایک رسک بھی ہے اور ایک نیا موقع بھی ہے۔ مالیاتی اور ٹیکنالوجی میں بنیادی تبدیلیوں نے نئی قسم کی انشورنس پالیسوں کی ضرورت کو بڑھا دیا ہے۔ تاہم انشورنس انڈسٹری کے لئے یہ تبدیلیاں سست رفتار عمل ہے اور اس پر

بتدریج عمل پیرا ہوجائے گا۔

مستقبل کا جائزہ:2020 میں پاکستان نے کاروبار میں آسانی پیدا کرنے کے لئے بہت ضروری اقدامات کے لئے ہیں۔ سی پیک اپنے اگلے مرحلے

میں داخل ہو چکا ہے جس سے پاکستان کی انشورنس انڈسٹری کے لئے بہترین مواقع پیدا ہوں گے۔ہم بزنس کی مسلسل کامیاب ترقی کے لئے بہت پر امید ہیں تاہم کورونا وائرس کی وجہ سے روپے کی قدر میں قلیل مدتی

گراوٹ، بڑھتی ہوئی مہنگائی اور مجموعی معاشی سستی خطرے کا باعث ہیں۔ کمپنی کی انتظامیہ ان حالات کے دوران کٹس کے ذریعے گروتھ بھی مجموعی گروتھ کو حاصل کرنے میں کوشاں ہے۔ یونائیٹڈ انشورنس کمپنی آف پاکستان نئی پرڈاکی پالیسی پر عمل پیرا ہے جوکہ ہمارا خاصہ ہے۔ ہم نئی پراڈکٹس کی تیاری، ٓن لائن فروخت کے نظام اور بہترین رابطہ نظام

دینے کیلئے کوششیں جاری رکھیں گے جس میں جلد کامیابی حاصل ہوگی۔۔

سی۔ ایس۔ آر اور کمپنی کے کاروبار کا ماحول پر اثر:یو۔آئی۔سی میں سی۔ایس۔آر کا اولین مقصد ایسے پروگرام مرتب کرنا ہے جس سے سوسائٹی کو مثبت فوائد حاصل ہو

سکیں، خاص طور پر ایسے لوگوں کو فوائد پہنچانا ہے جو اس کے مستحق ہیں۔ ہمارا مقصد جس پر ہم پچھلے کئی عشروں سے عمل کر رہے ہیں وہ مستحق افراد کی مدد کرکے معاشرے کو مثبت فوائد پہنچانا ہے۔ مستحق افراد کے معیار ِ زندگی کو

بہتر کرکے ہم معاشرے میں ذمہ دار شہری کا بھرپور کردار ادا کررہے ہیں۔سی۔ایس۔آر کو نافذکرنے کیلئے ہم بین الاقوامی روایات، اخلاقی اقدار اور قوانین کا بھرپور احترام کرتے ہیں

اندرونی احتسابی نظام کی مضبوطی:UICکی انتظامیہ کمپنی میں اندرونی احتساب کا مضبوط نظام مرتب کرنے کی ذمہ دار ہے۔ ہم نے مضبوط اندرونی احتسابی

نظام بنایا ہوا ہے تاکہ اثاثہ جات کی حفاظت کو یقینی بنایاجاسکے۔ مکمل اور بااعتماد مالیاتی گوشوارے استعمال کے لیے موجود ہیں اور اندرونی کنٹرول میں باحفاظت ہیں۔

اعتراف:ہم اپنے کسٹمرز کے شکر گزار ہیں کہ انہوں نے ہماری خدمات پر بھر پور اعتماد کا اظہار کیا ہے۔ہم اپنے بینکرز اور ریگولیٹری

اداروں کا بھی شکریہ ادا کرتے ہیں جنہوں نے ہمیں اس عرصے میں اپنا قیمتی ساتھ مہیا کیا۔کسٹمر اور بنکس کے تعاون سے پیکرا نے ہماری ائی ایف ایس ریٹنگ AAکر دی ہے جو ہماری کمپنی کی پروفیشنل کمٹمنٹ اور کسٹمر کی ضروریات کو

پورا کرنے سے حاصل ہوئی ہے۔آخر میں ہم اپنے سٹاف کی بھی بھرپور کاوشوں کے شکرگزار ہیں جو کمپنی کے لئے بھرپور طاقت کا باعث ہے۔

بورڈ کی جانب سے

محمد راحت صادق کمپنی کا سربراہ

کتوبر 2020 مورخہ27 ا

جاوید صادق چیئرمین

کتوبر 2020 مورخہ27 ا


کین! محترم اراہم 2020کے نو ماہ کی مالیاتی رپورٹ کو پیش کرتے ہوئے مسرت محسوس کر رہے ہیں۔ دی یونائٹیڈ انشورنس کمپنی آف

پاکستان لمیٹڈ کے ڈائریکٹرز 2020کے نو ماہ کی مالیاتی نتائج کا اعلان کرتے ہوئے خوشی محسوس کرتے ہیں۔

2020کے پہلے نو ماہ میں روایتی کاروبارکی کارکردگی کا جائزہ:کمپنی کا خام بیمہ اور خالص بیمہ30ستمبر، 2020 پر بالترتیب3,137.235ملین روپے اور 1,752.442ملین روپے ریکارڈ کیا

گیا ہے جبکہ2019 کے پہلے نو ماہ میں خام بیمہ 3,262.822ملین روپے اور خالص بیمہ1,881.725ملین روپے رہا تھا۔ یہ اعدادو شمار ٹیم ممبرز کی کمٹمنٹ کو ظاہر کرتے ہیں۔ کمپنی کا کاروبار خدا کی مہربانی سے ترقی کر رہاہے۔

ستمبر 30، 2020 کے ذمیمہ نویسی نتائج 627.969ملین روپے رہے جوکہ 2019 کے اسی عرصہ میں 504.518 ملین روپے رپورٹ ہوئے تھے۔ ذمیمہ نویسی نتائج میں بہتری رہی ہے۔ یہ انتظامی اور مارکیٹنگ سٹاف کی بہتری کامیابی ہے۔

2020کے نو ماہ میں قبل از ٹیکس منافع 9.97فیصد اضافہ سے684.897ملین روپے رہا جو کہ2019 میں 622.829 ملین روپے تھا۔اسی طرح بعد از ٹیکس منافع512.143ملین روپے رہا جوکہ 2019میں 467.244ملین روپے تھا۔

کمپنی کی فی حصص آمدنی1.74روپے ریکارڈ کی گئی جو کہ2019میں 1.58روپے فی حصص تھی۔جوکہ معمولی بہتری کے بارے میں بتاتی ہے۔

2020کے پہلے نو ماہ میں سرمایہ کاری آمدن معمولی کمی کے ساتھ40.923ملین روپے ریکارڈ ہوئی جبکہ2019میں سرمایہ کاری آمدن42.818ملین روپے تھی۔ اس کی وجہ ایسوسی ایٹ کمپنی میں زیادہ سرمایہ کاری ہے جس سے مستقبل بعید

کے فوائد متوقع ہیں۔کمپنی کے انتظامی اخراجات میں 2019کی نسبت3.80فیصد اضافہ دیکھنے میں آیا۔

2020کے پہلے نو ماہ میں تکافل کاروبارکی کارکردگی کا جائزہ:

کمپنی کے خام عطیات میں 2019 کی نسبت23.92فی صدکمی واقع ہوئی۔ کمپنی کے خام عطیات2019میں 887.633ملین روپے سے کم ہو کر2020میں 675.311 ملین روپے ریکارڈ کئے گئے۔ خام عطیات میں کمی کووڈ۔19کی وجہ سے ہوئی۔

تکافل آپر یشنز کی مجموعی سرمایہ کاری 2020 کی پہلے نو ماہ میں 49.530ملین روپے اضافہ سے بڑھ کر 146.480ملین روپے رہی۔

کمپنی کے انتظامی اخراجات2019میں 84.157ملین روپے سے بڑھ کر2020میں 84.815ملین روپے ہوگئے ہیں۔۔

کمپنی کے کاروباری معاملات کا جائزہ:کمپنی کا بورڈ آف ڈائریکٹرز درج ذیل اشخاص پر مشتمل ہے:

جناب جاوید صادق صاحب ٭ جناب راحت صادق صاحب ٭

جناب خواص خان نیازی صاحب ٭ محترمہ ہما وحید صاحبہ ٭

جناب آغا علی امام صاحب ٭ جناب جمیل احمد خان صاحب ٭

جناب سید راحت علی شاہ صاحب ٭

کاروبار کو درپیش رسکی اور غیر یقینی عوامل:کووڈ۔19نے پورے ملک کی معاشی سرگرمیوں کو متاثر کیا ہے اس طرح انشورنس انڈسٹری بھی اس وبا کی وجہ سے متاثر ہوئی ہے۔ انشورنس کمپنیاں موٹر کے کاروبار کی ذمیمہ نویسی نہیں کر سکیں ہیں کیونکہ تمام موٹر انڈسٹری کووڈ۔19کے

دنوں میں بند پڑی رہی ہے۔ تاہم انشورنس انڈسٹری ریکوری کر رہی ہے اور حالات دن بدن بہتر ہو رہے ہیں۔تمام کمپنیوں کو ڈیجیٹل بزنس سے متعلق رسک پر توجہ دینی ہوگی اور کورونا وائرس کے اختتام پر نئی ٹیکنالوجی کے استعمال اور ڈیجیٹل مالیاتی ٹیکنالوجی پر کام کرنا ہوگا۔ قوانین کی تعمیل اور کسٹمر ز کو سروس دینے کے لحاظ سے


Condensed Interim

FinancialInformation

For The Nine Months Period Ended September 30, 2020

The United Insurance Company of Pakistan Limited


CONDENSED INTERIM STATEMENT OFFINANCIAL POSITIONAs at September 30, 2020 (Un-Audited)

Un-Audited Audited

Note September 30,2020

December 31,2020

-------- Rupees --------ASSETSProperty and equipment 5 1,222,431,094 1,245,611,799 Intangible assets 6 2,142,025 2,636,894 Investment property 7 5,072,831 5,270,660 Investment in subsidiary and associate 8 1,733,119,154 1,567,352,894 Investments Equity securities 9 34,266,760 57,369,264 Debt securities 10 473,471,492 296,004,052 Term deposits 11 360,097,872 377,887,755 Loans and other receivables 12 213,299,868 126,656,853 Total assets in window takaful operations 12 A 717,657,047 708,353,645 Insurance / Reinsurance receivables 13 1,123,320,396 881,519,739 Reinsurance recoveries against outstanding claims 24 1,715,410,815 1,413,623,096 Salvage recoveries accrued - - Deferred commission expense/acquisition cost 25 174,108,038 240,000,231 Deferred taxation 14 - - Taxation-payment less provisions - - Prepayments 15 807,878,336 994,650,033 Cash & bank 16 538,762,577 266,125,644

Total Assets 9,121,038,304 8,183,062,559

EQUITY AND LIABILITIESCapital and reserve attributable to Company’s equity holdersOrdinary share capital 17 2,950,000,000 2,601,016,820 Share premium - - Reserves 18 59,811,254 49,898,833 Unappropriated profit 994,597,593 786,630,047 Total Equity 4,004,408,847 3,437,545,700

Surplus on revaluation of fixed assets 391,488,245 434,295,629

LIABILITIESTotal liabilities in window takaful operations 12 A 2,082,154 1,994,399 Underwriting provisions

Outstanding claims including IBNR 24 2,292,245,005 1,891,240,875 Unearned premium reserves 23 1,452,471,271 1,550,169,310 Premium deficiency reserves 6,130,838 37,161,886 Unearned reinsurance commission 25 112,802,505 187,662,197

Retirement benefit obligations - - Deferred taxation 14 186,420,371 175,738,714 Borrowings 19 86,124,863 77,823,296 Premium received in advance - - Insurance / reinsurance payables 20 209,924,373 165,321,214 Other creditors and accruals 21 121,305,741 67,739,837 Taxation - provision less payment 255,634,091 156,369,502

Total Liabilities 4,725,141,212 4,311,221,230

Total Equity And Liabilities 9,121,038,304 8,183,062,559

CONTINGENCY(IES) AND COMMITMENT(S) 22 - -

The annexed notes from 1 to 40 form an integral part of these condensed interim financial statements.


Huma WaheedDirector


Maqbool AhmadChief Financial Officer

Syed Rahat Ali ShahDirector


CONDENSED INTERIM STATEMENT OF PROFIT & LOSS ACCOUNTFor The Nine Months Period Ended September 30, 2020 (Un-Audited)


Huma WaheedDirector



Un-Audited Un-AuditedQuarter Ended Nine Months Ended

Note September 30, 2020

September 30,2019

September 30, 2020

September 30,2019

---------------------------- Rupees ----------------------------

Net insurance premium 23 580,694,430 574,978,821 1,752,441,544 1,881,725,229

Net insurance claims 24 (109,898,694) (174,896,105) (425,239,668) (765,277,937)Premium deficiency 25,526,912 (7,961,171) 31,031,048 28,035,890 Net commission and other acquisition costs 25 (20,572,707) (109,708,709) (69,361,560) (92,313,608)Insurance claims and acquisition expenses (104,944,489) (292,565,985) (463,570,180) (829,555,655)

Management expenses 26 (242,807,977) (155,663,461) (660,902,184) (547,651,368)

Underwriting results 232,941,964 126,749,375 627,969,180 504,518,206

Investment income 27 14,325,223 13,709,456 40,922,931 42,818,154 Rental income 28 684,000 573,000 2,052,000 1,719,000 Other income 29 5,533,868 11,883,014 21,146,546 27,346,463 Other expenses 30 (3,677,483) (92,415,533) (19,449,234) (107,770,301)

16,865,608 (66,250,064) 44,672,243 (35,886,684)

Results of operating activities 249,807,572 60,499,311 672,641,423 468,631,522

Finance cost 31 (3,658,500) (4,492,611) (10,765,644) (12,992,306)Share of profit from associate 2,597,464 6,891,105 15,766,260 25,079,384 Profit from window takaful operations 3,050,242 136,160,739 7,254,601 142,110,534 Profit before tax for the period 251,796,778 199,058,544 684,896,640 622,829,134

Income tax expense 32 (70,952,076) (61,500,047) (170,753,297) (155,585,085)

Profit after tax for the period 180,844,702 137,558,497 514,143,343 467,244,049

Earnings (after tax) per share - basic and diluted (Restated) 33 0.61 0.47 1.74 1.58




CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME


September 30, 2020

September 30,2019

September 30, 2020

September 30,2019

---------------------------- Rupees ----------------------------Profit after tax 180,844,702 137,558,497 514,143,343 467,244,049

Other comprehensive income/ (loss) for the year:

Items to be re-classified to profit and loss account in subsequent period:

Unrealized (loss) / gain on revaluation of available for sale investments net of deferred tax 13,752,888 (2,825,753) 468,397 (11,045,302)Realized (gain) / loss on revaluation of available for sale investments net of deferred tax 8,106,784 - 8,168,325 (2,300,561)Realized gain / (loss) on revaluation of available for sale mutual fund net of deferred tax (2,831) - (116,644) (5,390)

Share of other comprehensive (loss)/income from takaful: - - - -

Unrealized (loss) / gain on revaluation of available for sale investments net of deferred tax 5,661,604 (2,193,364) (5,281,686) (11,721,846)Realized (gain) / loss on revaluation of available for sale investments net of deferred tax - - 6,674,029 7,387,760

27,518,445 (5,019,117) 9,912,421 (17,685,338)

Items not to be re-classified to profit and loss account in subsequent period:

Incremental depreciation net of deferred tax 15,064,596 122,671 42,404,505 368,067 Incremental depreciation net of deferred tax - WTO 135,273 - 402,878 -

15,199,869 122,671 42,807,383 368,067 Share of other comprehensive loss from associate - - -

Total comprehensive income for the period 223,563,016 132,662,050 566,863,147 449,926,778


For The Nine Months Period Ended September 30, 2020 (Un-Audited)


Huma WaheedDirector





Un-Audited Un-AuditedSeptember 30,

2020September 30,

2019-------- Rupees --------

OPERATING CASH FLOWSa) Underwriting activities

Insurance premium received 2,978,933,706 3,071,325,463 Reinsurance premium paid (1,248,301,603) (1,287,496,500)Claims paid (1,150,897,011) (1,433,229,044)Reinsurance and other recoveries received 741,374,037 876,073,249 Commission paid (294,785,180) (368,181,804)Commission received 291,315,813 251,153,118 Management expenses paid (526,777,403) (481,582,517)Net cash flow from underwriting activities 790,862,359 628,061,966

b) Other operating activitiesIncome tax paid (68,811,930 (65,316,092)General expenses paid (19,449,234) (107,770,301)Other operating receipts/(payments) (70,101,426) 175,464,995 Loan to employees and agents (1,395,694) (3,312,240)Net cash flow from other operating activities (159,758,283) (933,639)Total cash flow from all operating activities 631,104,076 627,128,327

INVESTMENT ACTIVITIESInvestment income received 39,468,681 23,749,128 Rental income received 2,052,000 1,719,000 Net assets in window takaful operations (9,215,648) (142,110,534)Sale/(purchase) of investment & fixed deposits (297,411,827) (537,315,026)Fixed capital expenditure (103,677,271) (21,147,598)Proceeds from disposal of property and equipment 12,781,000 24,535,612 Net cash flow from investing activities (356,003,066) (650,569,419)

FINANCING ACTIVITIESFinance lease charges paid (10,765,645) (12,992,307)Increase / decrease in finance liabilities 8,301,567 (22,928,739)Dividends paid - - Net cash flow from financing activities (2,464,078) (35,921,046)Net cash (outflow)/ inflow from all activities 272,636,933 (59,362,137)Cash and cash equivalents at the beginning of the period 266,125,644 542,588,730

Cash and cash equivalents at the end of the period 538,762,577 483,226,593

CONDENSED INTERIM CASH FLOW STATEMENTFor The Nine Months Period Ended September 30, 2020 (Un-Audited)




2020September 30,

2019-------- Rupees --------

Reconciliation of Profit and Loss Account Operating cash flows 631,104,076 627,128,326 Depreciation / amortization (113,462,355) (65,636,324)Lease finance charges (10,765,644) (20,462,324)Profit on disposal of property and equipment (1,307,315) 15,425,692 Dividend income 564,168 589,019 Gain & other investment income 40,358,763 42,229,135 Share of profit from associate 15,766,260 25,079,384 Income from window takaful operations 7,254,601 142,110,534 Increase / (decrease) in assets other than cash 358,550,771 291,904,234 (Increase) / decrease in liabilities other than borrowings (413,919,981) (591,123,626)

Profit after Taxation for the period 514,143,343 467,244,049



Huma WaheedDirector





Attributable to Equity Holders of the Company

Sharecapital

Capital reserve

Reserve for issue of bonus shares

General reserve

Available for sale reserve

Unappro-priated profit

Total

---------------------------------------------- Rupees ----------------------------------------------

Balance as at January 01, 2019 2,261,753,760 - - 75,115,917 (16,911,458) 723,538,082 3,043,496,301

Transfer to reserve for issue of final bonus shares - - 339,263,060 - - (339,263,060) -

Bonus shares reserve capitalized 339,263,060 - (339,263,060) - - - -

Transfer to general reserve - - - - - - -

Cash Dividend paid relating to 2018 - - - - - - -

Total comprehensive income for the periodProfit after tax for the nine months period ended September 30, 2019 - - - - - 467,244,049 467,244,049

Other comprehensive income - - - - (17,685,338) 368,067 (17,317,271)

- - - - (17,685,338) 467,612,116 449,926,778

Balance as at September 30, 2019 (Un-audited)

2,601,016,820 - - 75,115,917 (34,596,796) 851,887,138

3,493,423,079

Balance as at January 01, 2020 (Audited)

2,601,016,820 - - 75,115,917 (25,217,084) 786,630,047

3,437,545,700

Transfer to reserve for issue of final bonus shares - - 348,983,180 - - (348,983,180) -

Bonus share reserve capitalized 348,983,180 - (348,983,180) - - - -

Cash Dividend paid relating to 2019 - - - - - - -

Transfer to general reserve - - - - - - -

Total comprehensive income for the periodProfit after tax for the nine months period ended September 30, 2020 - - - - 514,143,343 514,143,343

Other comprehensive income - 9,912,421 42,807,383 52,719,804

- - - - 9,912,421 556,950,726 566,863,147

Balance as at September 30, 2020 (Un-audited)

2,950,000,000 - - 75,115,917 (15,304,663) 994,597,593 4,004,408,847


CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITYFor The Nine Months Period Ended September 30, 2020 (Un-Audited)


Huma WaheedDirector





1 LEGAL STATUS AND NATURE OF BUSINESS

The United Insurance Company of Pakistan Limited (hereinafter called “the company”) was incorporated on October 20, 1959, as a Public Limited Company under the Defunct Companies Act, 1913, now the Companies Act, 2017, and its shares are quoted on Pakistan Stock Exchange Limited. The Registered Office of the company is situated at 204, 2nd floor, Madina City Mall, Abdullah Haroon Road, Saddar, Karachi, in the province of Sindh, and its Head Office is located in Lahore, in the province of Punjab. The principal activity of the company is General Insurance Business and it qualifies as a domestic insurance company under Insurance Ordinance, 2000 and undertakes Fire, Marine, Motor, Crop and Miscellaneous General insurance. The company has been allowed to work as Window Takaful Operator on August 18, 2014 by Securities and Exchange Commission of Pakistan under Takaful Rules, 2012 to carry on Islamic General Takaful in Pakistan. It has not transacted any insurance business outside Pakistan.

For the purpose of carrying on the takaful business, the company has formed a Waqf/Participants’ Takaful Fund (PTF) on June 09, 2014 under a trust deed. The trust deed governs the relationship of shareholders and policy holders for management of takaful operations.

2 BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE

These condensed interim financial statements have been prepared in accordance with the requirements of International Accounting Standard 34 - Interim Financial Reporting and the requirements of the Companies Act, 2017, the Insurance Ordinance, 2000, the Insurance Rules, 2017, the Insurance Accounting Regulations, 2017, Takaful Accounting Regulations, 2019 and the Takaful Rules, 2012 read with Circular No. 25 of 2015 issued on July 9, 2015 and the directives issued by SECP. Wherever the requirements of the Companies Act, 2017, the Insurance Ordinance, 2000, the Insurance Rules, 2017, the Insurance Accounting Regulations, 2017, Takaful Accounting Regulations, 2019 and the Takaful Rules 2012 read with Circular No. 25 of 2015 issued on July 9, 2015 or directives issued by the Securities and Exchange Commission of Pakistan differ with the requirements of the standard, the requirements of the Companies Act, 2017, the Insurance Ordinance, 2000, the Insurance Rules, 2017, the Insurance Accounting Regulations, 2017, Takaful Accounting Regulations, 2019 and the Takaful Rules 2012 read with Circular No. 25 of 2015 issued on July 9, 2015 and the requirements of the said directives take precedence.

These condensed interim financial statements does not include all the information and disclosures required in the financial statements, and should be read in conjunction with the Company’s annual financial statements for the year ended December 31, 2019.

2.1 Basis of measurement

These condensed interim financial statements have been prepared under the historical cost convention except that certain financial instruments are carried at fair value, freehold land and building is stated at revalued amount and staff retirement benefits are stated at present value.

2.2 Functional and presentation currency

These condensed interim financial statements are presented in Pakistani rupees which is the Company’s functional currency and presentation currency. All financial information presented in Pakistani rupees are rounded off to nearest rupees unless otherwise stated.

2.3 Standards, interpretations, and amendments effective in 2020

The following revised standards, amendments and interpretations with respect to the approved accounting standards as applicable in Pakistan would be effective from the dates mentioned below against the respective standards or interpretation:

NOTES TO AND FORMING PART OF THESE CONDENSED INTERIM FINANCIAL STATEMENTSFor The Nine Months Period Ended September 30, 2020 (Un-Audited)


Standards, Amendments and Interpretations IASB effective date (Annual periods beginning on or

after)

IAS-1 First - Adoption of International Financial Reporting Standards 01 January, 2020IFRS-9 Financial Instrument – Pre-replacement issues in the context of the IBOR reform

(Amendment)01 January, 2020

IFRS-9 Financial Instruments – Annual Improvements to IFRS Standards 2018–2020 (Amended) 01 January, 2020IFRS-16 Leases – Amendment to provide lessees with an exemption from assessing whether a

COVID-19-related rent concession is a lease modification.01 January, 2020

IFRS 7 Financial Instrument (Disclosure) – Pre-replacement issues in the context of the IBOR reform (Amendment)

01 January, 2020

IFRS-3 Business Combination – Amendments to clarify the definition of a business 01 January, 2020IFRS-3 Business Combination – Amendments to clarify reference to the Conceptual Framework 01 January, 2020IAS-8 Accounting policies, Change in Accounting Estimates and Error amendments. 01 January, 2020IFRS-3 Business Combinations – Amendments 01 January, 2020

2.4 Standards, interpretations, and amendments not effective at year end

Further, following new standards have been issued by IASB which are yet to be notified by the SECP for the purpose of applicability in Pakistan.

IFRS -1 First-time Adoption of International Financial Reporting Standards – Annual Improvements to IFRS Standards 2018–2020).

01 January, 2022

IFRS-4 Insurance Contracts – Extension of the Temporary Exemption from Applying IFRS 9 (Amended)

01 January, 2023

IAS 16 Property, Plant and Equipment – Prohibiting a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. (Amendments).

01 January, 2022

IAS 37 Provisions, Contingent Liabilities and Contingent Assets – costs to include when assessing whether a contract is onerous (Amendments)

01 January, 2022

IFRS-17 Insurance Contracts 01 January, 2023

The Company expects that the adoption of the above standards will have no material effect on the Company's condensed interim financial statements.



Un-Audited Audited

NoteSeptember 30,

2020December 31,

2019-------- Rupees --------

5 PROPERTY AND EQUIPMENTOperating assets at net book value - Owned 5.1 1,109,094,853 1,107,761,799 Operating assets at net book value - Right-of-use assets 5.2 113,336,241 137,850,000

1,222,431,094 1,245,611,799

5.1 Opening net book value 1,107,761,799 706,678,243 Add: Additions made during the period at cost 65,456,271 34,435,554 Add: Revaluation surplus made during the period at cost - 439,178,644 Add: Transfers made during the period at cost 68,523,280 17,000,000 Add: Accumulated depreciation reversed on disposals made during the period

20,821,771 32,492,293

Less: Disposals made during the period at cost (34,910,086) (41,759,903)Less: Accumulated depreciation reversed on matured assets made during the period (22,923,387) (10,111,110)Less: Depreciation for the period (95,634,795) (70,151,922)

1,333,053 401,083,556

Closing net book value 1,109,094,853 1,107,761,799

5.2 Opening net book value 137,850,000 67,963,077 Add: Additions made during the period at cost 38,221,000 74,544,575 Add: Revaluation surplus made during the period at cost - 23,249,565 Less: Transfers made during the period at cost (68,523,280) (17,000,000)Add: Accumulated depreciation reversed on matured assets made during the period

22,923,387 10,111,110

Less: Depreciation for the period (17,134,862) (21,018,327) (24,513,755) 69,886,923

Closing net book value 113,336,241 137,850,000

3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies and the methods of computation adopted in the preparation of the condensed interim financial statements as at September 30, 2020 are the same as those adopted in the preparation of the financial statements for the year ended December 31, 2019.

4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of condensed interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

In preparing these condensed interim financial statements, the significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the financial statements at and for the year ended December 31, 2019.



8 INVESTMENT IN SUBSIDARY AND ASSOCIATE

Investment in associate 8.1 707,949,938 692,183,678 Share deposit money 763,015,264 613,015,264 Advance for purchase of shares 8.2 262,153,952 262,153,952

1,733,119,154 1,567,352,894

8.1 Particulars of investment in associate

September 30,2020

December 31,2019

Face value per share

Number of shares (Rupees)

153,073,308 153,073,308 10 8.1.1 707,949,938 692,183,678

8.1.1 Market value of investment and percentage of holding in associate are Rs.3,748,765,313/- and 44.50% respectively (2019: Rs.3,721,212,117/- and 44.50%). 153,073,310/- (2019: 153,073,310/-) number of shares in associate are freezed with CDC under the provision of section 10 (2) of Micro finance Institutions Ordinance, 2001.

Un-Audited Audited

NoteSeptember 30,

2020December 31,

2019-------- Rupees --------

6 INTANGIBLE ASSETSOpening net book value 2,636,894 3,515,859

Add: Additions made during the period at cost - - Less: Amortization for the period (494,869) 878,965

(494,869) (878,965)

Net book value 2,142,025 2,636,894

7 INVESTMENT PROPERTYOpening net book value 5,270,660 2,447,702

Add: Additions made during the period at cost - 3,000,000 Less: Depreciation for the period (197,829) 177,042

(197,829) 2,822,958

Net book value 5,072,831 5,270,660



8.1.3 Summarised financial information extracted from the financial statements of the associate as at September 30, 2020 and 2019 is given below:

Total assets 25,722,479,162 18,780,054,487 Total liabilities (23,664,252,100) (17,131,498,683)Net assets 2,058,227,062 1,628,503,619 Company's share of net asset of associate 915,911,043 724,684,110 Total revenue 2,513,186,396 2,118,509,215 Company’s share of total revenue 1,118,367,946 942,736,601 Profit / (loss) after taxation 35,429,797 56,358,166

8.2 These advances have been given for the purchase of shares of M/s. Apna Microfinance Bank Limited to the other sponsors / shareholders of M/s. Apna Microfinance Bank Limited.

9 EQUITY SECURITIES

Available for sale 34,266,760 57,369,264 Listed shares 9.1 40,644,850 72,740,304 Less: unrealized loss on revaluation of investment (6,378,090) (18,382,847)Carrying value 34,266,760 54,357,457

Mutual Funds - 2,847,519 Add: unrealized gain on revaluation of investment - 164,288 Carrying value - 3,011,807

Carrying value 34,266,760 57,369,264

9.1 Cost of ordinary shares of quoted companies as at September 30, 2020 is Rs. 40,644,850/- (2019: Rs. 72,740,304/-)

10 DEBT SECURITIESPakistan Investment Bonds - Held to maturity 10.1 312,316,330 296,004,052

Treasury Bills 161,155,162 -

473,471,492 296,004,052

Un-Audited Audited

NoteSeptember 30,

2020December 31,

2019-------- Rupees --------

8.1.2 Movement of investment in associate

Beginning of the year 692,183,678 421,189,277 Add: Purchased during the year - 247,175,750

692,183,678 668,365,027 Share of profit of associate 15,766,260 23,818,651 Share of other comprehensive income of associate - -

Closing balance 707,949,938 692,183,678



Un-Audited Audited

NoteSeptember 30,

2020December 31,

2019-------- Rupees --------

10.1 The Pakistan Investment Bonds amounting to Rs. 298,600,000/- (2019: Rs. 283,700,000/-) are placed as statutory deposit with the State Bank of Pakistan in accordance with the requirements of clause (a) of the sub-section 2 of section 29 of the Insurance Ordinance, 2000.

11 TERM DEPOSITS

The term deposits comprise of the following:Deposits maturing within 12 months 360,097,872 377,887,755 Deposits maturing after 12 months - -

360,097,872 377,887,755

12 LOANS AND OTHER RECEIVABLES - Considered good

Receivable from related parties 12.1 59,462,529 20,176,103 Rent receivable 1,144,500 1,053,500 Accrued investment income 23,815,407 22,361,157 Lease security deposits 10,968,550 5,235,400 Other security deposits 31,988,629 40,895,348 Loans to employees 16,293,118 14,897,424 Branch balance receivable 3,532,453 8,697,793

Other receivable 66,094,682 13,340,128

Less: provision for impairment of loans and receivables - -

213,299,868 126,656,853

12.1 This represents amount due from M/s United Track System (Pvt) Ltd. an associated undertaking. (2019: Rs. 20,176,103/-).

12A Investment in window takaful operations (WTO)

Total assets in operator's fund 717,657,047 708,353,645 Total liabilities in operator's fund (2,082,154) (1,994,399)

Net assets in window takaful operations (WTO) 12A.1 715,574,894 706,359,246

12A.1 Movement of Investment in Window Takaful Operations (WTO) Balance at beginning of the year 706,359,246 576,098,500 Share of profit from window takaful operations (WTO) 7,254,601 125,476,048 Share of other comprehensive income / (loss) from window takafuloperations (WTO) 1,961,047 4,784,698

715,574,894 706,359,246



16 CASH & BANKCash and cash equivalents - Cash in hand 135,779 233,755 Policy & revenue stamps, bond papers - -

Cash at bank - Current accounts 318,700,620 166,480,752 - Saving accounts 219,926,178 99,411,137

538,626,798 265,891,889

538,762,577 266,125,644

Un-Audited Audited

NoteSeptember 30,

2020December 31,

2019-------- Rupees --------

13 INSURANCE / REINSURANCE RECEIVABLES- Unsecured and considered good

Due from insurance contract holders 727,420,317 569,119,377 Less : Provision for impairment of receivables from insurance contract holders - - Due from other insurers / reinsurers 395,900,079 312,400,362 Less : Provision for impairment of due from other insurers / reinsurers - -

1,123,320,396 881,519,739

14 DEFERRED TAXATION

Deferred tax liability 186,420,371 175,738,714

15 PREPAYMENTSPrepaid reinsurance premium ceded 23 800,124,659 989,711,038 Prepaid rent 7,753,677 4,938,995 Prepaid miscellaneous expenses - -

807,878,336 994,650,033



18 RESERVES

General reserves 75,115,917 75,115,917 Available for sale reserve (15,304,663) (25,217,084)

59,811,254 49,898,833

19 BORROWINGS

Liabilities against assets subject to finance lease 19.1 86,124,863 77,823,296

19.1 Opening Balance 77,823,296 52,198,875

Add: Disbursement during the period 14,607,172 83,249,172 Less: Repaid during the period (6,305,605) (57,624,751)

8,301,567 25,624,421

Closing Balance 86,124,863 77,823,296

20 INSURANCE / REINSURANCE PAYABLES

Due to insurance contract holders - - Due to other insurers / reinsurers 209,924,373 165,321,214

209,924,373 165,321,214

17 SHARE CAPITAL17.1 Authorized share capital

Un-Audited AuditedSeptember 30,

2020December 31,

2019 NoteSeptember 30,

2020December 31,

2019(Number of shares) -------- Rupees --------

300,000,000 300,000,000 Ordinary shares of Rs. 10/- each 3,000,000,000 3,000,000,000

17.2 Issued, subscribed and paid-up share capital

10,963,475 10,963,475 Ordinary shares of Rs. 10/- each fully paid in cash 109,634,750 109,634,750

284,036,525 249,138,207 Ordinary shares of Rs. 10/- each issued as fully paid bonus shares 2,840,365,250 2,491,382,070

295,000,000 260,101,682 2,950,000,000 2,601,016,820

Reconciliation of issued, subscribed and paid up share capital

260,101,682 226,175,376 At the beginning of the period 2,601,016,820 2,261,753,760 34,898,318 33,926,306 Bonus shares issued during the period 348,983,180 339,263,060

295,000,000 260,101,682 2,950,000,000 2,601,016,820



Un-Audited Audited

NoteSeptember 30,

2020December 31,

2019-------- Rupees --------

21 OTHER CREDITORS AND ACCRUALS

Federal excise duty/sales tax 17,575,573 16,800,000 Federal insurance fee 7,596,438 2,875,321 Accrued expenses 2,650,216 4,987,011 Other tax payables 61,006,551 19,149,353 Unpaid and unclaimed dividend 1,501,813 1,501,813 Provident fund contribution 2,935,354 1,320,409 Auditors' remuneration - 3,075,000 Others 28,039,796 18,030,930

121,305,741 67,739,837

22 CONTINGENCY(IES) AND COMMITMENT(S)22.1 Contingencies

There is no change in the status of contingent liabilities since the end of last annual reporting period December 31, 2019.

22.2 Commitments in respect of operating Ijarah

There are following commitments on balance sheet dateFor future Ijarah rentals payable 22.2.1 12,351,976 20,266,546

22.2.1 Commitments for rentals under Ijarah contracts in respect of vehicles are as follows:

Not later than one year 8,224,548 8,389,625 Later than one year and not later than five years 4,127,428 11,876,921 Later than five years - -

12,351,976 20,266,546




NoteSeptember 30,

2020September 30,

2019September 30,

2020September 30,

2019-------- Rupees -------- -------- Rupees --------

23 NET INSURANCE PREMIUM

Written Gross Premium 1,178,446,727 1,433,303,592 3,137,234,646 3,262,821,900 Add: Unearned premium reserve- Opening 1,320,589,278 1,215,427,959 1,550,169,310 1,535,651,678 Less: Unearned premium reserve - Closing 1,452,471,271 1,593,155,516 1,452,471,271 1,593,155,516 Premium earned 1,046,564,734 1,055,576,035 3,234,932,685 3,205,318,062

Less: Reinsurance premium ceded 314,484,917 571,588,789 1,292,904,762 1,461,560,040 Add: Prepaid reinsurance premium - Opening 951,510,045 729,559,729 989,711,038 682,584,097 Less: Prepaid reinsurancepremium - Closing 800,124,658 820,551,304 800,124,659 820,551,304 Reinsurance expense 465,870,304 480,597,214 1,482,491,141 1,323,592,833

580,694,430 574,978,821 1,752,441,544 1,881,725,229

24 NET INSURANCE CLAIMS EXPENSE

Claims Paid 213,260,637 583,933,862 1,150,897,011 1,433,229,044 Add: Outstanding claimsincluding IBNR - Closing 24.1 2,292,245,005 1,912,584,122 2,292,245,005 1,912,584,122 Less: Outstanding claims including IBNR - Opening 1,692,613,509 1,836,866,056 1,891,240,875 1,719,012,008 Claims expense 812,892,133 659,651,928 1,551,901,141 1,626,801,158

Reinsurance and other recoveries received 150,083,828 334,583,123 824,873,754 801,417,216 Add: Reinsurance and other recoveries in respect of outstanding claims - Closing 1,715,410,815 1,439,373,945 1,715,410,815 1,439,373,945 Less: Reinsurance and other recoveries in respect of outstanding claims - Opening 1,162,501,204 1,289,201,245 1,413,623,096 1,379,267,940 Reinsurance and other recoveries revenue 702,993,439 484,755,823 1,126,661,473 861,523,221

109,898,694 174,896,105 425,239,668 765,277,937

24.1 The aforesaid includes outstanding claims of Rs. 439,803,954/- (2019: 434,806,235/-) which are payable to a related party.



27 INVESTMENT INCOMEIncome from non-trading investments

Available for sale 3,051,690 172,500 4,389,586 6,912,737 Held to maturity 11,614,437 13,546,288 36,960,400 36,084,573

14,666,127 13,718,788 41,349,986 42,997,310 (Provision) / Reversal for impairment in value of investment - - - -

Investment related expenses (340,904) (9,332) (427,055) (179,155)

Net Investment Income 14,325,223 13,709,456 40,922,931 42,818,155

28 RENTAL INCOME 684,000 573,000 2,052,000 1,719,000

29 OTHER INCOME 5,533,868 11,883,014 21,146,546 27,346,463

30 OTHER EXPENSES 3,677,483 92,415,533 19,449,234 107,770,301

31 FINANCE COST

Mark-up on finance lease 3,658,500 4,492,611 10,765,644 12,992,306

Un-Audited Un-AuditedQuarter ended Nine Months Ended

NoteSeptember 30,

2020September 30,

2019September 30,

2020September 30,

2019-------- Rupees -------- -------- Rupees --------

25 NET COMMISSION AND OTHER ACQUISITION COSTS

Commission paid or payable 79,695,678 145,073,414 294,785,180 368,181,804 Add: Deferred commission expense - Opening 221,575,221 191,741,949 240,000,231 174,654,726 Less: Deferred commission expense - Closing 174,108,039 199,369,804 174,108,038 199,369,804 Net Commission 127,162,860 137,445,559 360,677,373 343,466,726

Commission received or recoverable 50,281,920 113,332,249 216,456,121 283,146,830 Add: Unearned re-insurance commission -Opening 169,110,738 75,242,910 187,662,197 128,844,597 Less: Unearned re-insurance commission -Closing 112,802,505 160,838,309 112,802,505 160,838,309 Commission from reinsurers 106,590,153 27,736,850 291,315,813 251,153,118

20,572,707 109,708,709 69,361,560 92,313,608

26 MANAGEMENT EXPENSES 242,807,977 155,663,461 660,902,184 547,651,368




September 30,2020

September 30,2019

September 30,2020

September 30,2019

-------- Rupees -------- -------- Rupees --------32 TAXATION

For the period -Current 52,052,145 65,519,788 164,074,079 146,364,846 -Prior period's - - - 5,102,386 -Deferred 18,899,931 (4,019,742) 6,679,218 4,117,852

70,952,076 61,500,047 170,753,297 155,585,085

33 EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net profit for the period by the weighted average number of shares at the period end as follows:

Basic earnings per shareProfit after tax for the period 180,844,702 137,558,497 514,143,343 467,244,049

Number of shares Number of shares

Weighted average number of shares of Rs. 10/- each (Restated) 295,000,000 295,000,000 295,000,000 295,000,000

Earnings per share of Rs. 10/- each- basic and diluted (Restated) 0.61 0.47 1.74 1.58

No figure for diluted earnings per share has been presented as the Company has not issued any instrument which would have an impact on earnings per share when exercised.

34 COMPENSATION OF DIRECTORS & EXECUTIVES

Remuneration of Chief executive & Directors during the period 3,203,300 7,411,900 9,611,100 22,196,500

Remuneration of key management personnel during the period 52,552,470 28,365,768 126,852,516 100,027,164



35 RELATED PARTY TRANSACTIONS

Related parties comprise of chief executive officer, directors, major shareholders, key management personnel, associated companies, entities with common directors and employee retirement benefit funds. The transactions with related parties are carried out at commercial terms and conditions and compensation to key management personnel is on employment terms. The transactions and balances with related parties other than those which have been specifically disclosed elsewhere in these condensed interim financial statements are as follows:

As atUn-Audited Audited

Nature of relationship Nature of transaction September 30,2020

December 31,2019

-------- Rupees --------Balances at period end:Associated undertakings (Payable) / receivable at period end 59,462,529 22,607,376

Investment through equity shares at period end 707,949,938 692,183,678 Investment through fixed deposits at period end - - Share deposit money at period end 763,015,264 613,015,264 Bank deposits at period end 13,096,081 4,511,200 Claims lodged /payable 439,803,954 434,806,235

Associated persons Advance for purchase of shares at period end 262,153,952 262,153,952 Key management personnel Loan to key management personnel period end 16,670,540 14,831,024 Employees' Provident Fund (Payable to) defined benefit plan period end 2,935,354 1,320,409


Transactions during the period: September 30,2020

September 30,2019

September 30,2020

September 30,2019

-------- Rupees -------- -------- Rupees --------

Associated undertakingsMotor tracking devices purchased during the period 3,927,000 1,368,500 6,774,500 6,698,000 Motor tracking device charges paid during the period 6,729,030 14,843,960 20,151,740 35,308,415 Device monitoring charges paid during the period 4,384,000 5,461,000 9,521,000 13,415,000 Rental income received during the period 430,250 337,500 1,289,250 1,012,500 Health service charges during the period 1,828,410 - 4,322,160 - Interest received on bank deposits during the period 74,310 254,135 222,781 938,731 Cash deposited in bank deposits during the period 174,871,377 150,298,045 403,942,451 864,120,983 Cash withdrawals in bank deposits during the period 166,153,337 181,511,013 395,357,571 849,287,285 Share Deposit money paid during the period - - 150,000,000 255,024,369

Associated personsAdvance for purchase of shares paid during the period - - - -

Key management personnelRemuneration of key management personnel during the period 55,755,770 35,777,668 136,463,616 122,223,664

Employees’ Provident Fund Employer contribution made during the period 5,229,544 5,411,044 15,333,466 18,506,515



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37 Impact of Covid-19

“During the year, the World Health Organization declared the Novel strain of Corona virus (Covid-19) a global pandemic and recommended containment and mitigation measures worldwide. The Federal and Provincial governments of Pakistan also took various measures, including imposition of lockdown, from the end of March 2020 to contain the spread of COVID-19. Consequently, imposition of lock down by the Federal and Provincial Governments of Pakistan caused an overall economic slowdown and disruption to various businesses. Going forward, the management is taking all the required actions and will continue to monitor the potential impact and take all the necessary steps possible to mitigate any impact. Although the management of the Company has been regularly conducting in depth analysis and has assessed the COVID impact, yet the Company has been affected from COVID-19 in the form reduction in insurance premium amounts, refunds of premiums as well as increase in claims.

Company’s management has assessed the possible accounting implications arising from Covid-19 for these condensed interim financial statements, including but not limited to impairment of financial and non- financial assets, and concluded that there has been no material accounting impact of Covid-19 on these condensed interim financial statements. From the very outset of Covid-19, the management has adopted various policies and practices to minimise adverse impact of Covid-19 on the business and is continuously monitoring the situation in order to proactively address any challenges which may arise from Covid-19

38 CORRESPONDING FIGURES

Corresponding figures have been rearranged or reclassified, wherever necessary, for the purpose of comparison and better presentation. However, no significant reclassification have been made.

39 DATE OF AUTHORIZATION FOR ISSUE

These condensed interim financial statements have been authorized for issue on October 27, 2020 by the Board of Directors of the Company.

40 GENERAL

The figures in the condensed interim financial statements have been rounded off to the nearest rupees.


Huma WaheedDirector





UnitedWindow Takaful

Operations

Condensed Interim

FinancialInformation

For The Nine Months Period Ended September 30, 2020

United Window Takaful Operations


Un-Audited Audited Un-Audited AuditedSeptember 30,

2020December 31,

2019September 30,

2020December 31,

2019Note OPF PTF

---------------------------- Rupees ----------------------------ASSETS

Property and equipment 5 23,504,448 26,353,040 18,897,628 24,499,629

Intangible assets - - - -

Investment property - - - -

Investment in subsidiary and associate - - - -

Investments

Equity securities 6 19,340,227 32,949,806 37,155,888 66,198,121

Debt securities 7 61,140,000 - 41,723,800 21,137,973

Term deposits 8 66,000,000 64,000,000 - -

Loans and other receivables 9 449,339,416 466,714,382 86,937,721 27,530,552

Takaful / Re-takaful receivables 10 - - 238,625,866 383,814,502

Salvage recoveries accrued - - - - Deferred taxation - - - - Accrued investment income - - - - Taxation - payment less provision - - - -Retakaful recoveries against outstanding claims - - 131,246,053 132,447,203 Deferred commission expense 77,807,064 103,585,065 - - Prepayments 11 - - 171,146,078 263,204,768

Cash & Bank 12 20,525,892 14,751,352 3,234,964 18,955,176

TOTAL ASSETS 717,657,047 708,353,645 728,967,998 937,787,924


CONDENSED INTERIM STATEMENT OF FINANCIAL POSITIONAs at September 30, 2020 (Un-Audited)


Huma WaheedDirector





CONDENSED INTERIM STATEMENT OF FINANCIAL POSITIONAs at September 30, 2020 (Un-Audited)


Huma WaheedDirector



Un-Audited Audited Un-Audited AuditedSeptember 30,

2020December 31,

2019September 30,

2020December 31,

2019Note OPF PTF

---------------------------- Rupees ----------------------------EQUITY AND LIABILITIESOperator’s Fund (OPF)Statutory fund 13 50,000,000 50,000,000 - - Accumulated profit 669,801,878 661,979,844 - - Available for sale reserve (7,438,994) (9,400,041) - - Total Shareholders Equity 712,362,884 702,579,803 - -

Surplus on revaluation of fixed assets 3,212,009 3,779,443 - -

WAQF/ PARTICIPANTS’ TAKAFUL FUND (PTF)Ceded money 14 - - 500,000 500,000 Accumulated surplus/(deficit) - - 39,960,668 (32,320,740)Available for sale reserve - - (17,891,169) (30,713,913)Total Participants' Takaful Fund - - 22,569,499 (62,534,653)Qard-e-Hasna - - - -

LIABILITIESPTF Underwriting provisions

Outstanding claims including IBNR - - 180,631,363 183,386,885 Unearned contribution reserves - - 159,366,454 249,852,862 Contribution deficiency reserve - - 7,924,944 7,924,944 Reserve for unearned retakaful rebate - - 33,962,134 54,966,764

- - 381,884,895 496,131,456

Retirement benefit obligations - - - - Deferred taxation - - - - Borrowings - - - - Contribution received in advance - - - - Takaful / Re-takaful payables 15 - - 15,875,860 39,519,648 Other creditors and accruals 16 2,082,154 1,994,399 308,637,744 464,671,474 Taxation - provision less payment - - - - Accrued expenses - - - - Income tax laibilities - - - -

2,082,154 1,994,399 324,513,604 504,191,121

TOTAL LIABILITIES 2,082,154 1,994,399 706,398,499 1,000,322,577

TOTAL EQUITY AND LIABILITIES 717,657,047 708,353,645 728,967,998 937,787,924

CONTINGENCY(IES) & COMMITMENT(S) 17 - - - -





Huma WaheedDirector




Note September 30,2020

September 30,2019

September 30,2020

September 30,2019

---------------------------- Rupees ----------------------------Participants’ Takaful Fund Revenue Account

Contributions earned 237,652,075 231,180,627 530,192,335 532,977,398 Less: Contributions ceded to retakaful (105,098,960) (104,708,441) (327,121,457) (312,012,734)Net contributions revenue 18 132,553,115 126,472,186 203,070,878 220,964,664 Retakaful rebate earned 19 33,452,135 21,748,172 72,345,177 64,287,348 Net underwriting income 166,005,251 148,220,358 275,416,055 285,252,012

Net takaful claims reported/setlled including IBNR 20 (93,137,578) (126,653,935) (191,283,243) (243,909,928)Reversal / (charge) of contribution deficiency reserve - - - -

(93,137,578) (126,653,935) (191,283,243) (243,909,928)

Other direct expenses 21 (5,942,729) (8,445,323) (15,066,105) (27,180,007)Surplus before investment income 66,924,944 13,121,098 69,066,708 14,162,077

Investment Income 22 451,057 281,720 1,770,963 797,476 Other income 23 170,567 475,111 1,886,478 657,477 Modarib's share of investment income (442,741) - (442,741) - Provisions for doubtful contributions (net of Wakala fee) - - - - Surplus transferred to accumulated surplus 67,103,827 13,877,929 72,281,408 15,617,030

Operator’s Revenue Account

Wakala fee 24 120,544,528 192,437,273 235,605,398 304,782,308 Commission expense 25 (93,760,666) (22,117,996) (146,515,466) (76,253,034)General, administrative andmanagement expenses 26 (25,904,562) (34,654,661) (84,815,025) (84,157,339)

879,299 135,664,616 4,274,907 144,371,935

Modarib's share of investment income 442,741 - 442,741 - Investment income 27 2,013,068 768,768 5,504,282 3,088,234 Other expenses 28 (313,153) (316,893) (3,053,298) (5,450,834)Other income 29 28,287 44,248 85,969 101,199

Profit before taxation attributable to shareholders 3,050,242 136,160,739 7,254,601 142,110,534

Taxation - - - - Profit after taxation attributable to shareholders 3,050,242 136,160,739 7,254,601 142,110,534


CONDENSED INTERIM STATEMENT OF PROFIT & LOSS ACCOUNTFor The Nine Months Period Ended September 30, 2020 (Un-Audited)



Quarter ended Nine Months EndedSeptember 30,

2020September 30,

2019September 30,

2020September 30,

2019--------------------------- Rupees ---------------------------

PARTICIPANTS' TAKAFUL FUND (PTF)

Surplus during the period 67,103,827 13,877,929 72,281,408 15,617,030

Other comprehensive income:

Item to be re-classified to profit and loss account insubsequent period: Unrealized loss on revaluation of available for sale investments 16,810,726 (2,432,567) (17,891,169) (43,919,616)Realized loss/(gain) on revaluation of available for sale investments - - 30,713,913 16,817,260 Item not to be re-classified to profit and loss account in subsequent period - - - -

16,810,726 (2,432,567) 12,822,744 (27,102,356)

Total comprehensive (loss)/ income for the period 83,914,553 11,445,362 85,104,152 (11,485,326)

OPERATOR’S FUND (OPF)

Profit after tax 3,050,242 136,160,739 7,254,601 142,110,534

Other comprehensive income:

Item to be re-classified to profit and loss account insubsequent period: Unrealized loss on revaluation of available for sale investments 7,974,090 (3,089,245) (7,438,994) (16,509,642)Realized loss on revaluation of available for sale investments - - 9,400,041 10,405,296

7,974,090 (3,089,245) 1,961,047 (6,104,346)

Item not to be re-classified to profit and loss account in subsequent period: Incremental depreciation 190,525 - 567,434 -

Total comprehensive income for the period 11,214,857 133,071,494 9,783,082 136,006,188


CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOMEFor The Nine Months Period Ended September 30, 2020 (Un-Audited)


Huma WaheedDirector






2020September 30,

2019September 30,

2020September 30,

2019OPF PTF

--------------------------- Rupees ---------------------------OPERATING CASH FLOWSa) Takaful activities

Contribution received - - 737,276,692 715,475,343 Wakala fee received /(paid) 235,605,398 304,782,308 (235,605,398) (304,782,308)Retakaful contribution (paid) / received - - (258,706,556) (312,433,504)Claims / Benefits paid - - (354,923,740) (416,443,769)Retakaful and other recoveries received - - 245,309,394 214,861,449 Commission paid - - - - Retakaful rebate received (120,737,466) (96,370,823) 51,340,546 64,287,348 Net cash flow from takaful activities 114,867,932 208,411,485 184,690,938 (39,035,440)

b) Other operating activitiesManagement and other expenses paid (84,272,596) (86,300,265) (8,405,766) (17,883,416)Other operating (payments)/ receipts 17,462,721 (49,034,194) (214,438,393) 3,504,650 Advances and deposits - - - - Net cash flow from other operating activities (66,809,875) (135,334,459) (222,844,158) (14,378,766)Total cash flow from all operating activities 48,058,057 73,077,026 (38,153,221) (53,414,207)

INVESTMENT ACTIVITIESInvestment income/ (loss) received 5,504,282 4,256,928 1,770,963 807,353 Purchase/ sales for investment / Investment properties (47,569,374) (42,608,044) 21,279,150 37,865,206 Fixed capital expenditure (218,425) (6,240,586) (617,104) (1,931,000)Total cash flow from investing activities (42,283,517) (44,591,702) 22,433,009 36,741,559

FINANCING ACTIVITIESAdvances against issue of share capital - - - - Dividends paid - - - -Total cash flow financing activities - - - -Net cash flow from all activities 5,774,540 28,485,324 (15,720,212) (16,672,648)Cash and cash equivalents at the beginning of the period 14,751,352 3,753,621 18,955,176 29,223,041

Cash and cash equivalents at the end of the period 20,525,892 32,238,945 3,234,964 12,550,392





2020September 30,

2019September 30,

2020September 30,

2019OPF PTF

--------------------------- Rupees ---------------------------Reconciliation of Profit and Loss Account

Net cash flow from underwriting activities 48,058,057 73,077,026 (38,153,221) (53,414,207)Depreciation expense (3,067,017) (2,608,303) (5,216,601) (8,639,114)Increase/ (decrease) in assets other than cash (43,152,967) 42,632,085 (180,043,812) 112,253,029 (Increase)/ decrease in liabilities other than borrowings (87,755) 25,921,492 293,924,079 (35,380,155)Investment income 5,504,282 3,088,234 1,770,963 797,476

Profit for the period 7,254,601 142,110,534 72,281,408 15,617,030

Attributed to

Operator's Fund 7,254,601 142,110,534 - - Participants' Takaful Fund - - 72,281,408 15,617,030

7,254,601 142,110,534 72,281,408 15,617,030



Huma WaheedDirector





CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERSEQUITY AND PARTICPANTS’ TAKAFUL FUND

Attributable to Shareholders’ of the Company

Operator’s fund Statutory fund

Accumulated profit

Available sale reserve Total

--------------------------- Rupees ---------------------------Balance as at January 01, 2019 (Audited) 50,000,000 536,503,796 (10,405,296) 576,098,500

Profit for the period ended September 30, 2019 - 142,110,534 - 142,110,534 Other comprehensive loss for the period - - (6,104,346) (6,104,346)

- 142,110,534 (6,104,346) 136,006,188

Balance as at September 30, 2019 (Un-Audited) 50,000,000 678,614,330 (16,509,642) 712,104,688

Balance as at January 01, 2019 (Audited) 50,000,000 661,979,844 (9,400,041) 702,579,803

Profit for the period ended September 30, 2020 - 7,254,601 - 7,254,601 Other comprehensive income for the period - 567,434 1,961,047 2,528,481

- 7,822,035 1,961,047 9,783,082

Balance as at September 30, 2020 (Un-Audited) 50,000,000 669,801,878 (7,438,994) 712,362,884

Attributable to Particpants of the PTF

Participants’ Takaful Fund Ceded money

Accumulated deficit

Available sale reserve Total

Balance as at January 01, 2019 (Audited) 500,000 (47,337,278) (16,817,260) (63,654,538)

Surplus for the period ended September 30, 2019 - 15,617,030 - 15,617,030 Other comprehensive loss for the period - - (27,102,356) (27,102,356)

- 15,617,030 (27,102,356) (11,485,326)

Balance as at September 30, 2019 (Un-Audited) 500,000 (31,720,248) (43,919,616) (75,139,864)

Balance as at January 01, 2019 (Audited) 500,000 (32,320,740) (30,713,913) (62,534,654)

Surplus for the period ended September 30, 2020 - 72,281,408 - 72,281,408 Other comprehensive income for the period - - 12,822,744 12,822,744

- 72,281,408 12,822,744 85,104,152

Balance as at September 30, 2020 (Un-Audited) 500,000 39,960,668 (17,891,169) 22,569,499


As At September 30, 2020 (Un-Audited)


Huma WaheedDirector





1 LEGAL STATUS AND NATURE OF BUSINESS

The United Insurance Company of Pakistan Limited (hereinafter called ‘the Company’) was incorporated in Pakistan on October 20, 1959, as a Public Limited Company under the Defunct Companies Act, 1913, now the Companies Act, 2017, and its shares are quoted on Pakistan Stock Exchange Limited. The Registered Office of the Company is situated at 204, 2nd floor, Madina City Mall, Abdullah Haroon Road, Saddar, Karachi, and its Head Office is located in Lahore. The principal activity of the Company is General Insurance Business and it qualifies as a domestic insurance company under the Insurance Ordinance, 2000 and undertakes Fire & Property Damage, Marine aviation & Transport, Motor and Miscellaneous General Insurance.

The United Insurance Company of Pakistan Limited has been allowed to work as Window Takaful Operator (WTO) (hereinafter called “the Operator”) through License No. 1 on August 18, 2014 by Securities and Exchange Commission of Pakistan under the Takaful Rules, 2012 to carry on Islamic General Insurance in Pakistan. For the purpose of carrying on takaful business, the Company has formed a Waqf/Participants’ Takaful Fund (PTF) on June 09, 2014 under a trust deed. The trust deed governs the relationship of shareholders and policy holders for management of takaful operations. The Operator has not transacted any business outside Pakistan.

2 BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with accounting and reporting standards as applicable in Pakistan. The accounting and reporting standards comprise of:

-International Financial Reporting Standards (IFRS) issued by International Accounting Standard Board (IASB) as are notified under the Companies Act, 2017; and-Provisions of and directives issued under the Companies Act, 2017, the Insurance Ordinance, 2000, the General Takaful Accounting Regulations, 2019 and the Takaful Rules, 2012 shall prevail.In case requirements differ, the provisions or directives of the Companies Act, 2017, the Insurance Ordinance, 2000, the General Takaful Accounting Regulations, 2019 and the Takaful Rules, 2012 shall prevail.

These financial statements reflect the financial position and results of Window Takaful Operations of both the Operators’ Fund (OPF) and the Participants’ Takaful Fund (PTF) in a manner that assets, liabilities, income and expenses of the Operator and PTF remains separately identifiable.

2.1 BASIS OF MEASUREMENT

The financial statements have been prepared under the historical cost convention except for certain obligations under employee retirement benefits which are measured at present value and certain financial instruments which are measured at fair value.

2.2 FUNCTIONAL AND PRESENTATION CURRENCY

These financial statements are presented in Pakistani Rupees which is the Operator’s functional currency and presentation currency. All figures have been rounded to the nearest rupee, unless otherwise stated.

2.3 Standards, interpretations and amendments effective in (current year)

The following revised standards, amendments and interpretations with respect to the approved accouting standards as applicable in Pakistan would be effective from the dates mentioned below against the respective standards or interpretation:

NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTSFor The Nine Months Period Ended September 30, 2020 (Un-Audited)


Standards, Amendments and Interpretations IASB effective date (Annual periods beginning on or

after)

IAS-1 First - Adoption of International Financial Reporting Standards 01 January, 2020IFRS-9 Financial Instrument – Pre-replacement issues in the context of the IBOR reform

(Amendment)01 January, 2020

IFRS-9 Financial Instruments – Annual Improvements to IFRS Standards 2018–2020 (Amended) 01 January, 2020IFRS-16 Leases – Amendment to provide lessees with an exemption from assessing whether a

COVID-19-related rent concession is a lease modification.01 January, 2020

IFRS-7 Financial Instrument (Disclosure) – Pre-replacement issues in the context of the IBOR 01 January, 2020IFRS-3 Business Combination – Amendments to clarify the definition of a business 01 January, 2020IFRS-3 Business Combination – Amendments to clarify reference to the Conceptual Framework 01 January, 2020IAS-8 Accounting policies, Change in Accounting Estimates and Error amendments 01 January, 2020IFRS-3 Business Combinations – Amendments 01 January, 2020

2.4 Standards, interpretations, and amendments not effective at year end

Further, following new standards have been issued by IASB which are yet to be notified by the SECP for the purpose of applicability in Pakistan.

IFRS -1 First-time Adoption of International Financial Reporting Standards – Annual Improvements to IFRS Standards 2018–2020).

01 January, 2022

IFRS-4 Insurance Contracts – Extension of the Temporary Exemption from Applying IFRS 9 (Amended)

01 January, 2023

IAS 16 Property, Plant and Equipment – Prohibiting a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. (Amendments).

01 January, 2022

IAS 37 Provisions, Contingent Liabilities and Contingent Assets – costs to include when assessing whether a contract is onerous (Amendments)

01 January, 2022

IFRS-17 Insurance Contracts 01 January, 2023

The Operator expects that the adoption of the above standards will have no material effect on the Operator’s condensed interim financial statements.

3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies and the methods of computation adopted in the preparation of the Condensed interim financial Statements. as at September 30, 2020 are the same as those adopted in the preparation of the financial statements for the year ended December 31, 2019.

4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of condensed interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

In preparing these condensed interim financial statements, the significant judgments made by management in applying the Operator’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the financial statements at and for the year ended December 31, 2019.



Un-Audited Audited

NoteSeptember 30, December 31,

2020 2019-------- Rupees --------

5 PROPERTY AND EQUIPMENT

5.1 Operator’s fundOperating assets 5.1.1 23,504,448 26,353,040

5.1.1 Opening net book value -owned 26,353,040 19,845,588

Add: Additions/transfers/revalaution surplus made during the period at cost 218,425 10,100,632 Add: Accumulated depreciation reversed on disposals made during the period - - Less: Accumulated depreciation reversed on matured assets made during the period - - Less: Disposals made during the period at cost - - Less: Depreciation for the period (3,067,017) (3,593,180)

(2,848,592) 6,507,452

23,504,448 26,353,040

5.2 Participants’ takaful fundOperating assets 5.2.1 18,897,628 24,499,629

5.2.1 Operating assets at net book value - Owned 24,499,629 33,943,376

Add: Additions/transfers/revalaution surplus made during the period at cost 853,000 2,507,500 Add: Accumulated depreciation reversed on disposals made during the period 1,002,504 35,968 Less: Accumulated depreciation reversed on matured assets made during the period - - Less: Disposals made during the period at cost (1,238,400) (301,500)Less: Depreciation for the period (6,219,105) (11,685,715)

(5,602,001) (9,443,747)

18,897,628 24,499,629



6.2 Participants’ takaful fund

Listed shares at cost 46,142,873 87,097,729 Less: unrealized loss on revaluation of investment (17,457,449) (30,458,942)Carrying value 28,685,424 56,638,787

Mutual Funds at cost 8,904,184 9,814,305 Less: unrealized loss on revaluation of investment (433,720) (254,971)Carrying value 8,470,464 9,559,334

37,155,888 66,198,121

7 INVESTMENT IN DEBT SECURITIES

7.1 Operator’s fundHeld-to maturity

Sukuk bonds 61,140,000 -

7.2 Participants’ takaful fundHeld-to maturity

Sukuk bonds 41,723,800 21,137,973

8 INVESTMENT IN TERM DEPOSITS

8.1 Operator’s fund

Short term deposits 66,000,000 64,000,000

Un-Audited AuditedSeptember 30, December 31,

2020 2019-------- Rupees --------

6 INVESTMENT IN EQUITY SECURITIES

6.1 Operator’s fundListed shares at cost 20,707,534 36,732,779 Less: unrealized loss on revaluation of investment (7,047,524) (9,045,239)Carrying value 13,660,010 27,687,540

Mutual Funds at cost 6,071,687 5,617,068 Less: unrealized loss on revaluation of investment (391,470) (354,802)Carrying value 5,680,217 5,262,266

19,340,227 32,949,806



Un-Audited AuditedSeptember 30, December 31,

2020 2019-------- Rupees --------

9 LOANS AND OTHER RECEIVABLES

9.1 Operator’s fund - Considered good

Accrued investment income 1,360,242 594,683 Security deposits 4,332,199 4,332,199 Loan to employees 1,305,469 1,285,852 Advance tax 1,372,687 847,920 Other receivables 146,413,618 1,768,500 Wakala fee receivable 294,555,200 457,885,229

449,339,416 466,714,382

9.2 Participants’ takaful fund -Considered good

Receivable from related parties - - Accrued investment income 735,899 - Security deposits 46,090,375 27,194,948 Advance tax 2,033,923 - Other receivables 38,077,523 335,604

86,937,721 27,530,552

10 TAKAFUL / RE-TAKAFUL RECEIVABLES

Participants’ takaful fund -Unsecured and considered goodDue from Takaful contract holders 166,531,085 228,496,452 Less: Provision for impairment of receivables from takaful contract holders - - Due from takaful / re-takaful operators 75,126,453 158,349,722 Less: Provision for impairment of receivables from takaful/retakafuls (3,031,672) (3,031,672)

238,625,866 383,814,502

11 PREPAYMENTS

Participants’ takaful fund

Prepaid re-takaful contribution ceded 171,146,078 263,204,768



13 STATUTORY FUND

Statutory reserves 13.1 50,000,000 50,000,000

13.1 Amount of Rs. 50 million is deposited as statutory reserves to comply with provisions of para 4 of Circular No 8 of 2014 read with section 11(c) of the Takaful Rules, 2012 issued by Securities and Exchange Commission of Pakistan which states that “Every insurer who is interested to commence window takaful business shall transfer an amount of not less than 50 million Rupees to be deposited in a separate bank account for window takaful business duly maintained in a scheduled bank”.

14 CEDED MONEY

Waqf money 14.1 500,000 500,000

14.1 The amount of Rs. 500,000/- has been set apart for Waqf Fund/ Participant Takaful Fund as Waqf money according to the Waqf Deed prepared for the purpose of creation of Waqf Fund/ Participant Takaful Fund.

Un-Audited Audited


2020 2019-------- Rupees --------

12 CASH & BANK


Cash in hand 55,127 54,260

Cash at bank - Current accounts 632,549 13,844,377 - Saving accounts 19,838,216 852,715

20,525,892 14,751,352


Cash at bank - Current accounts 178,483 4,130,050 - Saving accounts 3,056,481 14,825,126

3,234,964 18,955,176



Un-Audited Audited


2020 2019-------- Rupees --------

15 TAKAFUL / RETAKAFUL PAYABLES

Participant's takaful fundTakaful / re-takaful participants payables 15,875,860 39,519,648

16 OTHER CREDITORS AND ACCRUALS


Commission payable - - Provident fund contribution - - Auditors' remuneration - 850,000 Other taxes payable 2,082,154 1,144,399

2,082,154 1,994,399


Federal Excise Duty / Sales tax 10,014,587 3,261,225 Federal Takaful Fee 274,436 195,635 Other taxes payable 3,240,618 2,687,175 Wakala fee payable 294,555,200 457,885,229 Other payables 552,903 642,210

308,637,744 464,671,474

17 CONTINGENCY(IES) AND COMMITMENT(S)

17.1 Contingencies

There are no contingencies at the statement of financial position date.

17.2 CommitmentsThere are following commitments on statement of financial position date:

Future Ijarah rentals payable 17.2.1 11,303,989 14,617,664

17.2.1 Commitments for rentals under Ijarah contracts are as follows:

Due within one year 6,528,058 6,002,278 Due after one year but not later than five year 4,775,931 8,615,385

11,303,989 14,617,664




September 30, September 30, September 30, September 30,2020 2019 2020 2019

-------- Rupees -------- -------- Rupees --------18 NET TAKAFUL CONTRIBUTION

Written gross contribution 345,997,970 557,661,228 675,311,325 887,662,561 Less: Wakala fee (120,544,528) (192,437,273) (235,605,398) (304,782,308)Contribution Net of Wakala Fee 225,453,442 365,223,955 439,705,927 582,880,253 Add: Provision for unearned contribution- Opening 171,565,087 214,602,079 249,852,862 298,742,552 Less: Provision for unearned contribution - Closing (159,366,454) (348,645,407) (159,366,454) (348,645,407)

Contribution earned 237,652,075 231,180,627 530,192,335 532,977,398

Less: Re-takaful contribution ceded 33,085,376 98,949,392 235,062,768 309,988,833 Add: Prepaid re-takaful contribution - Opening 243,159,662 249,049,506 263,204,768 245,314,358 Less: Prepaid re-takaful contribution - Closing (171,146,078) (243,290,457) (171,146,078) (243,290,457)Re-takaful expense 105,098,960 104,708,441 327,121,457 312,012,734

132,553,115 126,472,186 203,070,878 220,964,664

19 NET REBATE ON RETAKAFUL

Rebate received or recoverable 8,061,112 20,765,384 51,340,546 67,562,269 Add: Unearned ReTakaful rebate - opening 59,353,157 53,524,507 54,966,764 49,266,798 Less: Unearned ReTakaful rebate - closing (33,962,134) (52,541,719) (33,962,134) (52,541,719)

33,452,135 21,748,172 72,345,177 64,287,348

20 NET TAKAFUL CLAIMS

Claims Paid 106,368,189 144,402,527 354,923,740 416,443,769 Add: Outstanding claims including IBNR - Closing 180,631,363 170,569,730 180,631,363 170,569,730 Less: Outstanding claims including IBNR - Opening (203,973,390) (186,822,296) (183,386,885) (215,396,440)Claims expense 83,026,162 128,149,961 352,168,218 371,617,059

Less: ReTakaful and other recoveries received 23,777,628 21,859,337 162,086,125 141,785,504 Add: ReTakaful and other recoveries in respect of outstanding claims - Closing 131,246,053 70,231,804 131,246,053 70,231,804 Less: ReTakaful and other recoveries in respect of outstanding claims - Opening (165,135,097) (90,595,115) (132,447,203) (84,310,177)ReTakaful and other recoveries revenue (10,111,416) 1,496,026 160,884,975 127,707,131

93,137,578 126,653,935 191,283,243 243,909,928

21 DIRECT EXPENSES

PTF 5,942,729 8,445,323 15,066,105 27,180,007




September 30, September 30, September 30, September 30,2020 2019 2020 2019

-------- Rupees -------- -------- Rupees --------22 INVESTMENT INCOME

PTF 451,057 281,720 1,770,963 797,476

23 OTHER INCOME

PTF 170,567 475,111 1,886,478 657,477

24 WAKALA FEE

Wakala fee 120,544,528 192,437,273 235,605,398 304,782,308

The Operator manages general takaful operations of the participant takaful fund and charge 35% of the gross contribution written in all classes.

25 NET COMMISSION AND OTHER ACQUISITION COST

Commission paid or payable 17,933,945 21,688,862 120,737,466 52,469,327 Add: Deferred commission expense - Opening 153,633,786 42,716,883 103,585,065 66,071,456 Less: Deferred commission expense - Closing (77,807,064) (42,287,749) (77,807,064) (42,287,749)Net Commission 93,760,666 22,117,996 146,515,466 76,253,034

26 GENERAL, ADMINISTRATIVE ANDMANAGEMENT EXPENSES

OPF 25,904,562 34,654,661 84,815,025 84,157,339

27 INVESTMENT INCOME

OPF 2,013,068 768,768 5,504,282 3,088,234

28 OTHER EXPENSES

OPF 313,153 316,893 3,053,298 5,450,834

29 OTHER INCOME

OPF 28,287 44,248 85,969 101,199



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8

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Taka

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-

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(PTF

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98

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(OPF

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81

129

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8

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3 7

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8 1

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2

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8 1

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4,38

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9

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(PTF

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3 To

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(PTF

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06,3

98,4

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1,0

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22,5

77

Segm

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-

-

-

-

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U

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99



32 IMPACT OF COVID-19

During the year, the World Health Organization declared the Novel strain of Corona virus (Covid-19) a global pandemic and recommended containment and mitigation measures worldwide. The Federal and Provincial governments of Pakistan also took various measures, including imposition of lockdown, from the end of March 2020 to contain the spread of COVID-19. Consequently, imposition of lock down by the Federal and Provincial Governments of Pakistan caused an overall economic slowdown and disruption to various businesses. The management of the Operator has been regularly conducting in depth analysis and has assessed that there is no material impact of COVID-19 on these condensed interim financial statements. Going forward, the management is taking all the required actions and will continue to monitor the potential impact and take all steps possible to mitigate any effects.

Operator’s management has assessed the possible accounting implications arising from Covid-19 for these condensed interim financial statements, including but not limited to impairment of financial and non-financial assets, and concluded that there has been no material accounting impact of Covid-19 on these condensed interim financial statements. From the very outset of Covid-19, the management has adopted various policies and practices to minimise adverse impact of Covid-19 on the business and is continuously monitoring the situation in order to proactively address any challenges which may arise from Covid-19.

31 RELATED PARTY TRANSACTIONS

Related parties comprise of directors, major shareholders, key management personnel, associated companies, entities with common directors and employee retirement benefit funds. The transactions with related parties are carried out at commercial terms and conditions and compensation to key management personnel is on employment terms. The transactions and balances with related parties other than those which have been specifically disclosed elsewhere in these financial statements are as follows:

Relation with undertaking Nature of transaction September 30,2020

December 31,2019

-------- Rupees --------Balances at year end:Associated undertakings Receivable/ (payable) at year end - - Key management personnel Loan to key management personnel 861,669 818,687 Staff retirement benefits plan (Payable) to defined benefit plan - -

(Payable) to defined contribution plan - -

Quarter Ended Nine Months EndedSeptember 30,

2020September 30,

2019 September 30,

2020September 30,

2019

Transactions during the yearAssociated undertakings Motor tracking devices purchased 348,500 561,000 853,000 1,931,000

Device monitoring charges paid 768,368 4,137,946 3,053,900 14,489,766 Health service charges paid (400,000) 900,000 2,000,000 2,100,000

Key management personnel

Remuneration of key management personnel 11,451,330 5,239,563 39,182,040 15,718,689

Employees’ Provident Fund

Employer’s Contributions made during the period 781,002 434,333 2,745,665 2,739,340




Huma WaheedDirector




33 CORRESPONDING FIGURES

Comparative figures have been rearranged and reclassified, wherever necessary, to facilitate comparisons. No significant reclassifications were made during the current year.

34 DATE OF AUTHORIZATION FOR ISSUE

These condensed interim financial statements have been authorized for issue on October 27, 2020 by the Board of Directors of the Company.

35 GENERAL

The figures in the condensed interim financial statements have been rounded off to the nearest rupees.


F



OPTIMISTIC

Years ofExcellence

REPORT2020

3rdQuarter

F



OPTIMISTIC

Years ofExcellence

REPORT2020

1stQUARTER

3rd 1st quarter report 2020

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